What does elasticity of demand measure?
a. how responsive consumers are to advertising
b. how responsive consumers are to price changes
c. how much consumers are affected by layoffs
d. how much consumers are affected by inflation
Answer: b. how responsive consumers are to price changes
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"Personalized pricing" and "group pricing" are examples of:
A) first-degree and second-degree price discrimination, respectively. B) second-degree and third-degree price discrimination, respectively. C) first-degree price discrimination. D) first-degree and third-degree price discrimination, respectively.
If Wes in Wisconsin buys $200 worth of stock in Toshiba, and the Japanese use the $200 to buy a wheel of cheese from Wes, then the U.S. net exports:
A. and net capital outflow are both zero. B. and net capital outflow both equal $200. C. is zero and net capital outflow is $200. D. equals $200 and net capital outflow is zero.
The rule of reason is the criterion introduced by the courts for determining whether a firm's action was illegal under the Clayton Act.
Answer the following statement true (T) or false (F)
Which of the following is not true of equilibrium price?
A. All consumers can buy all they demand. B. It is determined by the interaction of supply and demand. C. It is set by the government. D. It is also known as the market-clearing price.